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1 Ogden City Council Work Session: April 4, 2017 REVIEW OF THE ANNUAL ACTION PLAN FOR FISCAL YEAR 2018 Purpose of Work Session: Review of the FY2018 Annual Action Plan Background The Five-year Consolidated Plan and Annual Action Plan When receiving federal funds for economic development and housing programs, the City is required to submit a Consolidated Plan (ConPlan) to the Department of Housing and Urban Development (HUD) every five years. The plan was updated in 2015 for fiscal years 2016 through 2020. The plan adopted in 2015 will be in place from July 1, 2015 to June 30, 2020. The Consolidated Plan is part of the City’s application to HUD for Community Development Block Grants (CDBG) and HOME money. The five-year ConPlan can be viewed here, or at www.ogdencity.com under the Community tab. Along with the Consolidated Plan, the City must prepare and submit an Annual Action Plan each year as part of the annual application for funds. The Annual Action Plan indicates how funding will be used during the coming year and how the grant funds will further the goals in the Consolidated Plan. It establishes annual goals and outcomes for programs and projects funded by the CDBG and other federal grant funds. The FY18 Annual Action Plan is for the third year of the five-year ConPlan period. Significant Parts of the Plan Annual Action Plan for FY18 The Annual Action Plan proposed for FY18 is for the third year of the five-year ConPlan. The format for the Annual Action Plan was changed with the five-year ConPlan and the FY16 plan adopted in 2015 and is a format established by HUD’s reporting system. The Plan is broken into several sections and includes the following significant elements: AP-05 Executive Summary (Page 2) – This is an overview of the plan and its priority objectives. ---PAGE BREAK--- 2 Ogden City Council Work Session: April 4, 2017 AP-10 Consultation (Page 8) – This provides some background on the City’s outreach to outside agencies and other stakeholders in the development of the five-year ConPlan and continued coordination of services. AP-12 Participation (Page 14) – This section is a review of the citizen participation that has taken place with the development of the ConPlan as well as the Annual Action Plan. AP-15 Expected Resources (Page 16) – The Expected Resources section of the plan details what the City expects to receive in CDBG and HOME entitlement funds for year three of the five-year plan. AP-20 Annual Goals and Objectives (Page 19) – The goals and objectives section provides detail with regard to the goals identified in the strategic plan section of the ConPlan, lists anticipated funding for each goal and the specific programs that will be used to reach each goal. AP-35/38 Projects/Project Summary (Pages 27/29) – The project summary section of the AAP provides an overview of the specific programs the City has developed and provides a description of the program, anticipated funding, and more specificity regarding the planned activities in year three of the plan. AP-50 Geographic Distribution (Page 41) – This section provides an overview with regard to the anticipated geographic distribution of funds in the AAP. Various programs have broader and overlapping target areas accounting for the percentage total greater than 100% in some plan years. AP-55 Affordable Housing (Page 43) – This section provides specific goal numbers for affordable housing. AP-60 Public Housing (Page 44) – This is a section available in the plan to provide information about the City’s work to provide public housing in Ogden. AP-65 Homeless and other Special Needs Activities (Page 45) – This section provides information on how the City is working with other ---PAGE BREAK--- 3 Ogden City Council Work Session: April 4, 2017 organizations to meet the needs of the homeless and those with special needs. AP-75 Barriers to Affordable Housing (Page 49) – This is information included in the AAP from the housing study done for the Analysis of Impediments to Fair Housing Choice. AP-85 Other Actions (Page 51) – This section details other activities the City is participating in to address issues which have been previously addressed in the ConPlan or AAP. AP-90 Program Specific Requirements (Page 56) – This section outlines specific requirements for programs for the CDBG and HOME funds as required by federal regulation. Appendix A – Budget (Page 59) – This is the proposed budget for the FY18 Annual Action Plan. The details of the budget will be analyzed separately in this report. Appendix B – Citizen Comments (Page 60) – This section will be filled after the citizen comment period in complete. Appendix C – Program and Goals Summary Matrix (Page 61) – This section summarizes the programs and goals included in the five-year ConPlan. Proposed Schedule for Adopting the Annual Action Plan The proposed schedule for the Council’s review and adoption of the Annual Action Plan is as follows: March 14, 2017 – A draft of the plan is received by the Council office. March 29, 2017 – The 30-day public comment period for the plan begins. Any comments received are included with the final version the Council takes action on at the public hearing. April 4, 2017 – Council reviews the plan at a work session. ---PAGE BREAK--- 4 Ogden City Council Work Session: April 4, 2017 April 18, 2017 – Public hearing may be set for the adoption of the plan for May 2, 2017. A public hearing is required before the application can be submitted to HUD. April 28, 2017 – The public comment period closes. May 4, 2017 – Council is anticipated to hold the public hearing on the Plan and can adopt it by resolution. Current Proposal The Administration is proposing the Council adopt a resolution that approves the Annual Action Plan and budget for fiscal year 2018. Fiscal year 2018 is the third year of the five-year ConPlan period. The amounts in the Annual Action Plan budget as approved by the Council are incorporated into the Major Grants section of the City Budget. Annual Action Plan and Budget The Annual Action Plan budget consists of both an estimate of entitlement funding, program income funds, and carry-over funded and the Administration’s proposal on how those funds will be expended throughout the next fiscal year. The draft budget is located on the page 59 of the document. It contains funding for both Community Development and Economic Development projects and programs. The major elements of the budget are shown below: Anticipated new funds (Entitlements) $2,671,876 Program Income funds $469,540 Carry-over funds $1,969,389 CHDO Carry-over funds $50,586 Tax Increment Housing funds $0 Total $5,161,391 Description of Income (Sources of Funds) Like any budget, the funds indicated in the proposed plan are projected funds. The table showing the projected revenues and expenditures is shown on the page 59 of the plan document. Below are some significant aspects of the proposed budget: ---PAGE BREAK--- 5 Ogden City Council Work Session: April 4, 2017 The overall amount budgeted for this year is $5,161,391 which is a net decrease in the budget amount compared to last year’s adopted budget of $5,692,388 and from the amended FY17 budget total of $7,371,785. This FY18 budget amount contains no changes to the anticipated entitlement amount but does contain a decrease in both program income and carry-over funds compared to the previous year’s budget. The proposed Entitlement Funding shown in the budget is an estimate of federal grant dollars and City funds. The total amount anticipated for FY18 for CDBG funding is $982,810 and for HOME funding is $339,066. The adopted FY17 budget and the amended FY17 budget both had the same amounts for CDBG funding with the HOME funds adjusting to the same amount as the FY18 proposed budget in the FY17 amended budget. The Entitlement Funding totals in the FY18 Annual Action Plan budget not only include anticipated CDBG and HOME grant funds but also include several non-federal funding sources for the Quality Neighborhoods/Infill Housing program and the HELP program. As part of the Quality Neighborhoods program, the Administration is including $1,200,000 of City funds to be allocated to the Quality Neighborhoods program ($1,000,000) and the HELP program ($200,000). The program income, which is comprised of funds that have been returned to the City in the form of loan payments or other program payments, for FY18 is expected to be lower than the adopted FY17 budget and significantly lower than the amended FY17 budget. The increase in the amended FY17 budget was the result of some early payoffs the City received during the 2017 fiscal year. The FY18 program income estimate is $469,540. Since this is an estimate of the program income the city will receive for the period between the development of this plan in February of this year and the end of the fiscal year on June 30th, this total will be reviewed and adjusted with the mid-year Annual Action Plan amendment. The anticipated carry-over funds shown in the FY18 budget total $1,969,389. This is a decrease in the amount of carry-over funding compared to the FY17 adopted budget and the FY17 amended ---PAGE BREAK--- 6 Ogden City Council Work Session: April 4, 2017 budget. The carry-over funds include the carry-over of $250,000 of State funds allocated to the City in FY2016 for the Unit Reduction program. Description of Expenses (Uses of Funds) Public Services Business Information Center. This year’s budget proposal for this program is $55,000 which is the same as last year’s budget. Public Improvements Target Area Public Improvements. The amount proposed for FY18 is $450,000. This amount is same as the FY17 adopted; however, this is a replenishment of these funds from the amended FY17 budget. A significant portion of these funds, $300,000, was reallocated to the Special Economic Development Projects program with the amended FY17 budget. Programs Infill Housing. The amount included for this program is $326,064 and is comprised only of CDBG income in the proposed Annual Action Plan budget. The amount included in the AAP FY18 budget is less than the FY17 adopted budget of $639,502 and the amended budget of $524,254. The program guidelines for this program were changed in November of 2015 in conjunction with the Quality Neighborhoods Strategy resolution. The program guideline changes allowed the Infill Housing funds to be used for land acquisition and consolidation without prior Council approval for up to $250,000. In addition, the amended guidelines for this program stated that if a project consisted of 10 or more units it would be brought to the Council for approval. Rental Rehabilitation. The budgeted amount for this program remains as it was in last year’s budget at $90,000. Own in Ogden. The proposed budget of $250,000 is the same as the FY17 adopted budget. Emergency Home Repair. The funding for this program is proposed to be $40,000. This is the same as last year’s amount. ---PAGE BREAK--- 7 Ogden City Council Work Session: April 4, 2017 Demolition Loan Program. The proposed budget amount for this is $12,000. This is same as last year’s allocation. CHDO (Community Housing Development Organization). The proposed amount for this year’s budget is higher than last year. The proposed amount for this year is $101,720. Quality Neighborhoods. This line item replaces the East Central Revitalization program from the previous five-year ConPlan and previous Annual Action Plans. The total amount proposed with the FY18 budget is $2,607,235. The total amount shown in this line item includes several federal and non-federal funding sources. These include the following: o CDBG – This is the amount included in the Quality Neighborhoods (QN) program line item that is from federal CDBG entitlement funds. The proposed amount for QN CDBG is $296,504. This is a decrease from the FY17 amended budget of $389,667. o HOME – The proposed amount for federal HOME entitlement funds included in the QN program is $374,267. This is also a decrease from the FY17 amended budget amount of $1,224,260. o HOME Match – The HOME match amount included in the QN program is $364,206. This is higher than the amended FY17 budget amount of $233,903. o City Funds – The proposed FY18 budget includes the addition of $1,000,000 of non-federal City funds. The total amount shown in this column includes the $1,000,000 as well as a portion of the carry-over funds for a total of $1,252,258. This is the third year in which this money is being proposed for the Quality Neighborhoods program with the anticipated source of this funding being BDO lease revenue. This is the second year these funds are anticipated to directly fund Quality Neighborhoods projects as outlined in the Quality Neighborhoods Strategy resolution adopted jointly in ---PAGE BREAK--- 8 Ogden City Council Work Session: April 4, 2017 November of 2015. Because these are not federal funds, the actual allocation of this money will take place with the adoption of the FY18 City budget and not with the adoption of the AAP budget. o State Funds – In 2015, the City received $750,000 of state funds to increase funding for the City’s Unit Reduction program. The City is anticipating a carry-over of $250,000 for this program. o Housing Funds – The AAP budget proposes $70,000 for this fund. This amount is the same as the amended FY17 budget. HELP – The Home Exterior Loan Program (HELP) is proposed to be funded at $609,852. This total includes $269,248 from the City- funds column consisting of $200,000 of City funds from BDO lease revenue and $69,248 of carry-over from the previous fiscal year. The HELP fund line item also includes $340,604 from Housing fund program income and carry-over funds. This is an overall decrease from the amended FY17 budget of $962,563. Special Economic Development Projects. This program was previously known as the Central Business District Revitalization Program but was changed to its current title with the Amendment #1 to the FY2017 Annual Action Plan in March of this year. The amended FY17 budget included a total of $680,000 for this program. The proposed FY18 budget proposes a total of $10,000. Small Business Loan Program. The amount proposed for this year’s budget is lower than the mid-year amended budget amount of $510,000 and lower than the adopted FY17 budget of $400,000. The proposed amount for this year is $308,051. Microenterprise Loan Program. This is a program created in FY2017 and was a new line item that year’s budget. The goals for the program fall under Priority Objective #9 – Stimulate Economic Growth of the ConPlan. There was no funding included in the FY17 budget. The proposed FY18 budget proposes a total of $10,000 for this program. ---PAGE BREAK--- 9 Ogden City Council Work Session: April 4, 2017 Administration. The amount budgeted for Administration in this year’s budget is similar to that of last year’s adopted budget of $291,760. This year’s budget is proposed to be $291,469. Issues for the Council The proposed FY18 Annual Action Plan is very similar to the previous year’s budget. The FY17 amended budget did include some significant changes. These included a large increase in program income from loan payoffs and a program change from the Central Business District Revitalization program to the Special Economic Development Projects program. The City’s CDBG and HOME grant funding has been relatively stable over the last few years but has decreased markedly when compared to grant funding levels over the last twenty years. As a result of this, many of the programs have transitioned from grant programs to loan repayment programs to better recapture the initial funding. In addition, program changes such as the Quality Neighborhoods initiative and the aforementioned Special Economic Development Projects program have more directly focused resources on macro-level housing and economic development issues. The issue for the Council is to consider the direction and strategy that has been presented with the Annual Action Plan budget and programs. The Council should be considering the success of these strategies and should determine if the proposed course of action should remain in place. While relatively few major policy changes can take place within an individual year’s Annual Action Plan budget, the Council should be looking at each year’s budget within the context of the five-year ConPlan and the overall strategy the City has been using for many years. Questionsfor Administrative Staff 1. Please discuss the lower amount proposed for the Infill Housing program. The proposed FY18 amount is $326,064 while the amended FY17 budget for the same program was $524,254. 2. Please provide an update on the status of the Unit Reduction program and the State Funds ($250,000 in FY18) shown as carry- over. 3. Please provide an update on the HELP program. ---PAGE BREAK--- 10 Ogden City Council Work Session: April 4, 2017 4. Please discuss the proposed $10,000 for the Microenterprise Loan program. The program was created in conjunction with the FY17 Annual Action Plan approval but was not funded in FY17. Attachments 1. Transmittal from Administration 2. Resolution 3. Draft Annual Action Plan FY2018 a. Appendix A – Budget b. Appendix B – Public Comment c. Appendix C – Programs and Goals Summary Matrix Council Staff Contact: Glenn Symes, AICP (801) 629-8164 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---